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Denmark - online gambling regulations

Published by Niki | July 27, 2020

Country Specifics

Over the last few years, hundreds of online casinos have popped up, due to the popularity of this online gambling market. The industry itself produces billions of dollars annually and countries that have jumped on the bandwagon are cashing in richly with yearly revenue obtained from the market.

Online Gambling Regulations in Denmark

Denmark, known as one of the happiest countries in the world, has joined in on legalizing online gambling. The history that comes with their gambling laws is quite interesting but mostly open-minded. In this article, we’ll take a look at the history and laws regarding gambling, as well as all new developments within regulation and the Danish gambling market itself.

History and laws of gambling in Denmark

When it comes to gambling, Denmark had only one licensed betting company for many years. Danske Spil is a state-owned company that was the only legally licensed betting company, and all other Danish and overseas companies offering sports betting and other gambling options were prohibited. Unfortunately, the Danish government was put under a lot of pressure to change its regulations. This was probably for the better, as their regulations weren’t as effective as they thought they would be. In the years when Danske Spil was the only legal betting company, there were over 400 sports betting sites allowing Danes to place bets.

In 2010 the Danish government started working on new legislation which would only be placed in motion in January 2012. This moment in itself was historic as it liberalized the market. Danske Spil still had its monopoly over lotteries, number games and animal race betting such as horse racing, but other iGaming operators were finally allowed to apply for licences in sports betting, casino games and online poker. The only exception was poker tournaments. These all fell under the Act on Public Poker. The Danish Gambling Authority, Spillemyndigheden, was in charge of ensuring the implementation of the Danish Gambling Act.

With the liberalization of the online gambling market, the Danish Gambling Authority (SKAT) made a point of licensing only 25 operators in the first year. While the online gambling market has been opened, the Danish government is still focused on preventing unlicensed gambling sites from offering their services to Danish players. They have proved their seriousness on the matter by blacklisting 57 sites in 2012 alone.

It’s interesting to see that Danske Spil’s profits have skyrocketed since the new legislation came into effect. The company was split into two, now known as the Danske Lotteri Spil and the Danske Licens Spil. The last-named oversees the entire online gambling sector and has reported profits increasing by more than 60% from one year to the next.

For the Danish, the change in legislation means more gambling variety and a broader online casino base to choose from. The only thing that still works against online gambling operators is that the Danish government has a very strict process they follow when handing out licences to foreign operators, and they also have a strict approach when it comes to gambling advertisement.

Stricter bans on illegal sites

The Danish are not pushovers, and when it comes to their laws they are known to be meticulous. In 2017 there was some trouble when internet service providers refused to restrict access to 24 online gambling domains focused on getting Danish players. Denmark’s regulatory agency, Spillemyndigheden was so displeased by the refusal that they went to court in an attempt to get their demands enforced. The case came to a close in the first month of 2018 when the courts ordered the ISP’s to comply with the demands.

It is important to note that while online gambling is completely legal in the country, the Danish authorities are clear on the fact that any and all sites played on should be legalised by the regulatory bodies within the country. Online casinos are only permitted to offer their products and services to Danish citizens if they have gone through the strict licensing process and have been approved and granted a licence.

Are online gambling winnings taxable in Denmark?

In Denmark, players who have won while playing online gambling games must pay income tax on the prizes and winnings. This is due to the fact that most online casinos don’t deduct taxes before paying out the prize or cash winnings. Hence as a player, you are required to declare any and all winnings and pay any requested tax on it. There is no information on how much a player will be taxed but as in most cases, it can be assumed that the amount of tax will be based on the amount of the winnings.

For online casino operators, there is a hefty tax rate of 20% of their commission. It might seem quite heavy but when compared to the tax online operators have to pay in other areas it is still quite reasonable.

Is online gambling legal in Denmark?

Online gambling has been legalised in Denmark since 2012. Thus, players can with peace of mind play at online casinos with no fear of penalties or committing a crime. However, the Danish authorities have made it very clear that only sites that have received a licence from within the country borders are considered legal to play at.

It is vital that once you start looking for an online casino to play responsibly at, you search for those that have received the stamp of approval from the country’s regulatory bodies. With the strict vetting process in place, players can also have peace of mind that if the country officials have given the casino the green light it is a safe and secure site to play at.

While some unlicensed sites might look glamorous and fun to play at, they could end up scamming you. The results will be horrible as there will be no support from the government for players who’ve knowingly signed up at an illegal online casino. Some of the top-rated online casinos available to the Danish market include LeoVegas Casino and NordicBet. Both these online casinos are known for their superb welcome offers, frequent promotions and bonuses, quality game choices, and top-notch customer service.

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